Last week's poll: Government seeks assurances on GKN acquisition

Clark’s letter to Melrose chief executive Simon Peckham sets out a series of commitments that would be binding in order to make the bid for GKN successful. These include maintaining GKN’s operation as a UK business, with share listing and headquarters staying in the UK; maintaining its UK workforce and respecting its existing employment rights; remaining within certain R&D programs, such as eDrive and Wing of the Future; invest in training and development of workforce, including apprenticeships; guaranteeing prompt payment for suppliers; and making satisfactory arrangements for current and future pensioners.

Melrose chairman Christopher Miller hailed the deal as one that would “create a manufacturing and engineering powerhouse”, adding that his company has put forward “a number of legally binding commitments on matters including pensions, research and development, and ownership periods as a part of our commitment to realising that ambition.”

Melrose’s commitments have been welcomed by George McFarlane, CBI director of sectors, who said: “It’s encouraging that Melrose have made commitments on skills, R&D and people here in the UK.